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Informist, Friday, Feb. 6, 2026

 

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--RBI Malhotra: MPC left repo rate unchanged at 5.25% 
--RBI Malhotra: MPC voted 6-0 to leave repo rate unchanged at 5.25% 
--RBI Malhotra: MSF, Bank rates remain unchanged at 5.50%; SDF rate at 5.00% 
--RBI Malhotra: MPC decided to maintain 'neutral' policy stance 
--RBI: MPC Singh retained view stance should be accommodative from neutral 
--RBI Policy: Next MPC meeting on Apr 6-8 
--RBI Policy: Minutes of Feb MPC meeting to be released on Feb 20

 

MUMBAI – The Reserve Bank of India's Monetary Policy Committee Friday left the policy repo rate unchanged at 5.25% in a unanimous decision, the central bank's governor, Sanjay Malhotra, said. The committee also retained the 'neutral' policy stance even as external member Ram Singh was of the view that the stance be changed to accommodative from neutral.

 

The rate-setting panel's decision was on expected lines. Most economists and market participants polled by Informist expected the committee to hold interest rates, especially after US President Donald Trump announced a trade deal with India, which would bring tariffs on New Delhi down to 18% from 50%. 

 

The committee lowered the repo rate by 150 basis points in 2025, the most in a calendar year since 2019. It started lowering interest rates in February 2025 with a 25-bps cut, followed by another 25-bps cut in April, a larger-than-expected 50-bps reduction in June, and a 25-bps reduction in December, bringing the policy rate to 5.25%.

 

"Based on a comprehensive review of the domestic macroeconomic conditions and the outlook, the MPC (Monetary Policy Committee) is of the view that the current policy rate is appropriate," Malhotra said in his statement. "Going forward, the MPC will be guided by the evolving macroeconomic conditions and the outlook based on data from the new series in charting the future course of monetary policy."

 

The central bank deferred giving growth and inflation projections for 2026-27 (Apr-Mar) to April as the new GDP and CPI series would be released later this month, Malhotra said. 

 

The RBI raised the GDP growth forecast by 20 bps each for the June quarter and the September quarter to 6.9% and 7.0%, respectively. It also raised the CPI inflation projected for FY26 to 2.1% from 2.0%.

 

"Benign inflation provides the leeway to remain growth-supportive while preserving financial stability," the governor said. "We remain committed to meet the productive requirements of the economy and sustain the growth momentum."

 

With the repo rate left unchanged at 5.25%, the Standing Deposit Facility remains at 5.00% and the Marginal Standing Facility and bank rate at 5.50%. Minutes of the February MPC meeting will be published on Feb. 20. The next meeting of the MPC is scheduled for Apr 6-8.  End

 

Reported by Shubham Rana

Edited by Avishek Dutta

 

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